Gold Rebounds on Euro Gains
Yesterday’s flush of Gold down to $1730 served to be a wake-up call to the bulls who had been lying in wait for a further correction.Â Their patience was rewarded.Â With the Euro, however, moving back over the $1.30 level today that made it difficult for the bears to hold the price down below $1740.For most of the time between the European close at 11am and the COMEX close a line was drawn on the December contract chart at $1746.25 and that like was successfully held into Globex trading.Â But once that level failed gold was free to run higher.Â As of this writing it’s pushed back above $1749, nearly erasing all of Sunday/Monday’s drop.
Monday low’s are significant in major markets like Gold.Â They usually mean a high much later in the week.Â I would look for gold to make a strong push back towards $1775 by the end of the week if $1750 is held on an hourly close at some point during Asian trading.Â In general it was a risk-on day with the Euro up strong on Spanish bailout rumors and money flowing into U.S. equities and out of treasuries.Â In what should be happy news for bond bulls the latest T.I.C. report showed a 1.5% gain in the total foreign holdings of Treasuries with the Swiss and the English doing most of the heavy lifting in August.Â The rate of growth had slowed considerably below the 1% trend line during the Summer.Â At this point the U.S. bond market continues to be supported by their allied central banks intent on not being the recipients of capital flight from the Euro-zone periphery as well as smart U.S. investors.
Currency Articles - Oct 23, 2015 9:50 - 0 Comments
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